Can CLTs own and control rental property?

A:

Yes. While most CLTs deal with homeownership, several operate rental properties as well. In fact, CLTs often partner with other developers to use Low-Income Housing Tax Credits as a means of financing larger rental developments. Unlike traditional rental property operators, the community membership of the CLT makes the rental property effectively accountable to the community—not to an absentee landlord. Also, the ground lease arrangement with CLTs gives tenants the added security that rent increases will be limited and that forced eviction will not occur for economic reasons, because community interest, not profit, guides CLTs.